After Owners Lost $12M Beach Home, Bank Exec Just Moved In, Neighbors Say
A top commercial foreclosure executive at Wells Fargo Bank may be on the hot seat, after a claim by neighbors of a California couple who lost a lavish $12 million beach home to Wells Fargo. They say that she and her family used it as a weekend retreat over the summer while the bank refused to show it to prospective buyers, reports the Los Angeles Times.
At one point near the end of August, according to neighbors, the family held a large party at which guests arrived in a yacht,
The bank is investigating the neighbors’ claims concerning the single-family home in upscale Malibu Colony and says that it would be a violation of its ethics code for an employee to make personal use of a surrendered property, the newspaper recounts. The house is expected to be on the market soon.
The original owners weren’t able to continue living there after suffering a devastating loss in Bernard Madoff’s massive hedge fund fraud, according to the newspaper. A real estate agent retained by the former homeowners pointed the Times to an online photo album for the waterfront property.